LME Copper Rises on Weaker Dollar, Market Awaits China Stimulus Cues

SEATTLE (Scrap Monster): London copper rose on Monday, supported by a weaker dollar and hopes that top consumer China would announce a fiscal stimulus package that would boost metals demand.

Three-month copper on the London Metal Exchange (LME) gained 0.7% to $9,420 a metric ton by 0211 GMT.

The dollar index eased 0.4% from a two-week high hit in the previous session.

A weaker dollar makes greenback-priced commodities cheaper for buyers holding other currencies.

U.S. President Donald Trump sowed confusion last week when he mentioned a possible April 2 deadline in connection with tariffs on Canada and Mexico, but later reaffirmed the Tuesday deadline.

He said he would add another 10% tariff on Chinese goods on Tuesday, effectively doubling 10% duties imposed on February 4.

"I think the markets are responding to further rhetoric about U.S. tariffs on base metals and the hope that China's NPC might yield further economic stimulus," said Kyle Rodda, senior financial markets analyst at Capital.com.

Spotlight will be on China's National People's Congress (NPC) meeting scheduled for March 5 to see if the country unveils more stimulus, given the tariff war and concerns about slow demand.

Meanwhile, the European Commission will present measures this week meant to boost demand for electric vehicles (EVs) in the European Union, and envisages local content requirements for car battery production, according to a draft of the proposals.

LME aluminium was up 0.9% at $2,628 a ton, zinc gained 1.4% at $2,832, nickel rose .6% to $15,685, tin firmed 0.3% to $31,400 and lead rose 0.2% to $1,995.50.

SHFE aluminium rose 0.2% to 20,680 yuan ($2,840.43) a ton, SHFE copper firmed 0.3% to 77,240 yuan, zinc climbed 1.1% to 23,750 yuan, nickel was steady at 127,070 yuan, lead gained 0.4% to 17,240 yuan and tin rose 0.3% to 255,920 yuan.

 Courtesy: www.tradingview.com